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JEA Memo/Ordinance v Memo To: Ann Meuse, Finance Director From: Jeri Benjamin, Accounting Supervisor Subject: JEA Date: May 15, 1997 CC: Jim Jarboe, City Manager 1. A $19,000 refund is anticipated on the May 1997 JEA invoice related to a rate code change at the 1100 Sandpiper Lane service address (wastewater treatment plant expansion). 2. Per Section 5.a) of the franchise agreement between the City of Atlantic Beach and the JEA, franchise fees are calculated at 6% of gross revenues collected (the JEA doesn't pay us unless they receive the revenues). Rebates, write-offs, etc., impact the amount collected (see attached). 3. Effective October 1, 1996, the JEA's rates decreased - General Service rates dropped 5.5% and General Service Demand rates dropped 9.5%. Per a JEA representative, the combination of a decrease in rates and a milder winter contributed to a decrease in the revenues that the franchise fee and public service tax are calculated on. This would explain why our revenue for these two items is below the anticipated budget level. 4. I'm meeting with the Controller of the JEA in downtown Jacksonville Wednesday morning, 5/21/97, to discuss calculation of the public service tax. Attachment ORDINANCE NO . 40-86- 14 AN ORDINANCE AMENDING ORDINANCE 40-74-7 WHICH GRANTED TO THE JACKSONVILLE ELECTRIC AUTHORITY, ITS SUCCESSORS AND ASSIGNS , AN ELECTRIC FRANCHISE, AND IMPOSING PROVISIONS AND CONDITIONS RELATED THERETO, IN ORDER TO PROVIDE FOR MONTHLY PAYMENTS OF FRANCHISE FEES, PROVIDING AN EFFECTIVE DATE. WHEREAS , the Parties did enter into a franchise agreement (the "Agreement") , dated July 2 , 1974 wherein the Parties were granted the rights , privileges , and obligations , therein contained , and WHEREAS, the Parties have agreed to amend the Agreement with regard to the payment scheduling to benefit their respective cash flow needs , now therefore : BE IT ENACTED BY THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA. Section 1 . Section 5 is repealed in its entirety and a new Section 5 is created to read: Section 5 : a) No later than 60 dais after the end of each fiscal year, the Grantee , its successors and assigns , shall have paid to the Grantor and its successors an amount which when added to the amount of all taxes , licenses , and other impositions levied or imposed by the Grantor upon the Grantee ' s electric property, business , or operations , and those of the Grantee ' s electric subsidiaries for the preceding tax year, if any, will equal six percent of the Grantee ' s cross revenues collected from the sale of electrical energy to all customers within the corporate limits of the Grantor for the 12 fiscal months preceding. Section 5 : b) Advance Payment of the annual amount to he paid to the Grantor by the Grantee under the terms of Section 5 . a hereof shall be made by estimated monthly installments commencing on or before May 30 , 1986 for the Grantee ' s revenues (as defined in Section 5 . a) for the month of March, 1986 and then monthly thereafter . Each estimated monthly installment including the initial payment. of May 30 , 1986 , shall be calculated on the basis of 90% of the Grantee ' s revenues (as defined in Section 5 . a) for the monthly billing period ending 60 days prior to each scheduled monthly payment . It is also understood that for purposes of calculating each monthly installment , all taxes , licenses , and other impositions , if any, shall be estimated on the basis of the latest data available for any such amounts annually imposed on the Grantee, before being prorated on a monthly basis . The final installment for each fiscal year of this grant shall he adjusted to reflect any underpayment or overpayment resulting r from estimated monthly installments made for said fiscal year. For this agreement, a fiscal year is defined as the period October 1 through September 30 . Section 2 . This Amendment to Ordinance 40-74-7 shall become effective only upon acceptance by the Grantee and shall take effect immediately upon such approval by the Grantee . Section 3 . SAVE AND EXCEPT as hereby expressly amended, all terms and conditions of the Ordinance 40-74-7 dated July 2 , 1974 shall be and remain in full force and effect. Passed by the City Commission on first reading on April 28 , 1986 . Passed by the City Commission on second and final reading on May 12 , 1986 . ATTEST: I j/ /,(/- 1/)," City Clerk , Atlantic Beach Mayor, Atlantic` Be William S . Howell ATTEST: , /'-----' . ./ / . , , / t Administrative Assistant tEA M�z agiTTg i ector RovceZyles /�7 FORM APPROVED : FORM APPROVED: 0./.: _..X (1.. .r-, ‘17-t4(-2-/ -11/1c:_"12-- Office of General Counsel torney for Atlantic Beach, Fla. City of Jacksonville , Fla .